New York Will Raise Electricity Tariffs for Miners

John B. Rhodes, president and CEO of the New York State Department for Energy Research and Development, said that the state and municipal governments can take higher demands on the use of electricity by enterprises that have been engaged in digital currency mining since March, according to Coindesk.

“The Commission will allow municipal power authorities to create a new tariff focusing on high-density load customers that do not qualify for economic development assistance and have a maximum demand exceeding 300 kW and a load density that exceeds 250 kWh per square foot per year, a usage amount far higher than traditional commercial customers” – said the regulator.

This decision was made based on the statement of the New York Municipal Energy Agency, which includes 36 municipal bodies of the State of New York.

According to NYMPA, the mining farms consume about 33% of the total electricity consumed by the district. They practically do not invest in local communities and can not provide enough jobs.

Mining cryptocurrency is a fairly energy-intensive process, during which the issuance of tokens and confirmation of transactions in the blockchain take place. This often involves a large number of conventional or specialized processors.

The decision was taken after the debate, during which they mentioned the problem of electricity consumption for securing the work of mining farms.

The American city of Plattsburgh is also discussing a ban on the mining of digital currencies for a period of 18 months due to sharply increased electricity bills.

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